Last checked at 22 Jun 2017 07:00
22 June 2017
Frontier Developments plc
Pre-close Trading Update
Revenue up 75%, operating profit up 500%
Frontier Developments plc (AIM: FDEV; "Frontier" or the "Company"), a leading independent creator of video games, is pleased to announce an update on trading for the financial year ended 31 May 2017 (FY17).
Good trading performance has continued since the last trading update on 19 April 2017. The Company expects to report revenue for the financial year ending 31 May 2017 of approximately £37.3 million, slightly ahead of previous guidance and a 75% increase over the prior year (FY16: £21.4 million). Operating profit margin for FY17 is expected to be towards the top of the 15-20% guidance range. The Company expects to report an operating profit (as calculated under IFRS) of at least £7.2 million, which is a 500% increase over the £1.2 million reported for the prior year.
The step-up in financial performance over the prior year reflects the launch of Planet Coaster, Frontier's second game franchise, in November 2016. This marks the completion of a successful business model transition to multi-franchise self-publishing. Frontier's first game franchise, Elite Dangerous, continues to perform well, and will shortly be available to a new audience with its release on PlayStation 4 later this month.
The Company held cash balances of £12.6 million at 31 May 2017, an increase of £4.0 million over the prior year.
The Company anticipates the announcement of full audited financial results in early September 2017.
David Braben, Chief Executive of Frontier, said:
"I am delighted with our progress in the last 12 months and would like to thank everyone for their continued creativity, hard work and dedication. We now have two strong franchises in the market and have successfully transitioned to a self-publishing business model, proving our ability to launch franchises.
Our ambition now is to build on this success, continue to invest in our franchises and scale up to create a self-publishing multi-franchise success story. Our third franchise, which is based on an enduring Hollywood movie IP of global renown, is scheduled for release in calendar 2018, and we will provide more details about this exciting project later this year."
Enquiries:
Frontier Developments | +44 (0)1223 394 300 |
David Braben, CEO Alex Bevis, CFO David Walsh, COO
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Numis - Nomad and Joint Broker | +44 (0)20 7260 1000 |
Simon Willis / Jamie Lillywhite(Nomad) / Toby Adcock
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Finncap | +44 (0) 207 220 0500 |
Matt Goode/Giles Rolls
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Tulchan Communications | +44 (0) 207 353 4200 |
James Macey White/Matt Low
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About Frontier Developments plc
Frontier Developments plc, listed on the AIM stock market (AIM: FDEV), is a leading independent creator of self-published videogame franchises founded in 1994 by David Braben, co-author of the seminal 'Elite' game. Based in Cambridge, Frontier uses its proprietary 'COBRA' game development technology to create innovative games, currently focusing on videogame consoles and personal computers.
www.frontier.co.uk
About Elite Dangerous
Elite Dangerous - available for Windows PC, Apple Macintosh, Microsoft Xbox One and coming to Sony Playstation 4 in June 2017 - is the definitive massively multiplayer space epic, bringing gaming's original open world adventure to the modern generation with a connected galaxy, evolving narrative and the entirety of the Milky Way re-created at its full galactic proportions.
www.elitedangerous.com
About Planet Coaster
Planet Coaster - available for Windows PC - builds on Frontier's genre-defining expertise with coaster park games such as RollerCoaster Tycoon 3 and Thrillville. It further raises the bar for this popular genre, allowing players to let their imaginations run wild as they surprise, delight and thrill incredible crowds, and share their success with the world via the Steam Workshop community.
www.planetcoaster.com